U.S. Formally Launches "Double Anti-" Investigation on China's Tires

On July 31, the U.S. Department of Commerce decided to formally initiate an anti-dumping and anti-subsidy merger investigation on Chinese engineering tires. This is the fifth merger investigation initiated by the United States in China in less than a year, and it is the largest anti-dumping investigation ever faced by the Chinese rubber industry.

The US Department of Commerce announced that the dumping investigation period was from October 1, 2006 to March 31, 2007, and the subsidy investigation period was from January 1, 2006 to December 31, 2006. The product involved in the case was accused of dumping margins of 30.49% to 210.48%, and the subsidy rate exceeded 2%. The object of the survey was new inflatable rubber tires designed for construction machinery and off-highway use, including agricultural tires, construction tires, tires for construction machinery, dump trucks, and truck tires. In the sense of engineering tires. The US International Trade Commission will make preliminary rulings on the damage issue on August 24. The US Department of Commerce’s subsidy and dumping ruling will be made on October 3 and December 17, respectively.

It is understood that the investigation was conducted on the application of anti-dumping and anti-subsidy investigations for Chinese-made engineering tyres on June 18th by the US Titanic Tire Company and the United Steel Workers Union. In a complaint, Tetan and the U.S. Steel Workers Union stated that in 2006 China exported more than 14.95 million tons of products to the United States, and exports totaled more than 370 million U.S. dollars. The complaint also alleges that China’s exports to the United States have occupied a huge market share in the United States and are still growing, causing substantial damage to the US industry and will continue to pose substantial threats of damage. In mid-July, the US International Trade Commission and the U.S. Department of Commerce held a hearing on the matter. Bridgestone United States and Ohio Denman Tire also joined the ranks of anti-dumping for the sale of tyres to China.

In response to the United States launched the "double reverse" survey of Chinese tyres, China expressed its strong opposition. The Ministry of Commerce of the People's Republic of China stated that in such a short period of time, the United States initiated so many anti-dumping and anti-subsidy merger investigations against Chinese products is an abuse of the relevant rules of the WTO and does not contribute to the development of mutually beneficial and win-win bilateral economic and trade relations. It is reported that more than 30 major tire companies and some export distributors in the country have also reached an agreement: China Minmetals Chemicals Import and Export Chamber of Commerce and the China Rubber Industry Association took the lead in carrying out harmless defense.

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